Kosovo-Emergency Rehabilitation Project Project Name Kosovo-Emergency Transport Rehab. Project Region Europe and Central Asia Region Sector Other Transportation Project ID KOPE70295 Borrower(s) KOSOVO, FED. REP. OF YUG.(SERBIA/MONT) Implementing Agency Address JOINT INTERIM ADM. DEPT. OF TRANSPORTATION, UNMIK Central Government Building, Rr.Nënë Tereza, Prishtina, Kosovo Contact Person: Michel Gontier Tel: 381 38 500 223 Fax: 1 212 963 8442 Environment Category C Date PID Prepared March 31, 2000 Projected Appraisal Date May 15, 2000 Projected Board Date October 9, 2000 1. Country and Sector Background 1. The road network of Kosovo consists of about 3,800 kilometers. of roads, including 623km of main roads (all paved), and 1,300km of regional roads, of which 920km are paved. Most of the roads have been built or rebuilt in the sixties. Road design standards are usually adequate, with the exception of the width of the roadways and shoulders, which are usually very narrow. Network density is relatively low, at about 0.35km/km2. Adequate development and maintenance of the road network in Kosovo has been an issue since the 1970s. While the road network has been developed, road maintenance has been persistently under-funded. This has resulted in a continuous deterioration of the road network. The Spring 1999 conflict has had limited impact on the road network. However, the network is in very poor shape primarily because of a pervasive lack of adequate maintenance since the seventies (aggravated by rather rigorous winters), virtually no maintenance over the last 10 years, as well as heavy military and civilian traffic since last year. Damage observed include disparition of the asphalt layers on localised sections, landslides, numerous potholes and cracks, as well as water running on the road surface. 2. Thirteen bridges were damaged during the conflict. However, bypasses/temporary bridge structures are in place on all bridges seriously damaged. All bridges on the main and regional road networks which have not suffered direct conflict-related damage seem to be in fair condition, despite the lack of maintenance. Finally, over the years, most of the horizontal and vertical signalization has disappeared. In summary, about 25 percent of the main and regional road networks, with a part which needs to be seriously rehabilitated and in some cases reconstructed, while most sections need to be urgently maintained, to avoid further damage which: (i) could rapidly lead to the closure of certain road sections to civilian traffic; and (ii) would require, in the near future, the complete reconstruction of the damaged sections, an investment that Kosovo cannot afford to undertake at this point. Road Management Set Up3. Until 1989, planning and administration of the main and regional road networks were handled principally by a provincial Road Organization, staffed with about 550 employees, and headed by a Board whose members represented various groups having an interest in roads. Following the end of provincial autonomy in 1989, and until June 1999, the management of the Road Organization reverted mostly Serb Kosovar staff. During this period, resources allocated to the rehabilitation and maintenance were limited, and, most probably, nonexistent during the conflict. Following the departure of Serb Kosovar staff, the Road Organization was re-staffed spontaneously in June 1999 by Kosovar Albanians, some of whom were part of the staff prior to 1989. Traffic 4. Since the beginning of the conflict, shifts in traffic composition and frequency have been observed. For example, the road network has been used by heavier vehicles than in the past, including KFOR vehicles and transit traffic-- most of which have an axle load above the standard 10-tons axle load limit used in road design in Kosovo. In addition, there has been a jump in vehicle ownership following, inter alia, refugees' return. The new traffic composition and volume put an extra burden on already exhausted road structures, as well as on networks under the roads such as water and sewerage systems. In addition, there has been much more traffic on certain local roads due to persons having sought shelter in mountainous areas. A number of gravel and dirt roads have been over-used and as a result, have numerous potholes. At this stage, it is not yet clear whether the main road network capacity will need to be increased in the medium-term, as it seems that current traffic levels on the main network do not generally exceed 6,000 to 8,000 vehicles per day. However, there are a number of congestion spots which would need immediate attention, (such as the border crossing with Macedonia and some of the road sections surrounding Pristina), and shoulders should be widened in specific locations to increase traffic fluidity. A first structured traffic count will be organized by the Road Administration for the Spring/Summer of 2000. The results of the counts will provide important input to plan further road maintenance/rehabilitation programs. 2. Objectives The primary objective of the Project is to contribute to the reconstruction and development of Kosovo, through the reestablishment of a road maintenance administration and financing mechanisms, as well as urgent repairs to the network. In addition, the Project could look at ways of supporting activities in priority areas such as: (i) funding mechanisms for road maintenance activities; (ii) decrease traffic congestions at some specific locations; and (iii) increase road safety. 3. Rationale for Bank's Involvement The proposed project supports a key objective in the reconstruction strategy of Kosovo prepared by the European Commission and the Bank, namely the rehabilitation of the road network, a pre-requisite for economic recovery. In addition, the Bank has been seen as a reliable partner able to build a consensus among the different actors involved in the sector on the content of the road rehabilitation program and the role of the different actors. Finally, the Bank activities will complement those of the other donors, as donors will essentially focus on heavy road rehabilitation on teh most deteriorated road sections, while the Bank will support road maintenance activities on about half of the main network, to prevent further deterioration and delay as long as possible reconstruction activities which would mobilize a significant part of the scarce resources likely to be available for road maintenance in the near-term. 4. Description The proposed Project will: (i) support the set up of and strengthen a road management capacity in Kosovo; (ii) restore local contracting capacity for road/bridge rehabilitation and summer/winter maintenance; (iii) support emergency maintenance and rehabilitation works on the main network over a two to three years period; (iv) support the establishment of a sustainable financing mechanism for road maintenance activities; and (v) provide assistance in priority areas which could include treatment of traffic congestions and road safety issues. 5. Financing Total ( US$m) EUROPEAN COMMISSION 13.8 KREDITANSTALT FUR WIEDERAUFBAU 9.0 SPECIAL FINANCING (IDA) 5.0 AGENCE FRANCAISE DE DEVELOPEMENT 0.5 UNMIK 0.3 UNIDENTIFIED 31.4 Total Project Cost 60.0 6. Implementation It is proposed that implementation be undertaken by the Road Administration, under the supervision of UNMIK. This implementation structure would be available to assist any donor. It is advised to support the Road Administration with international project implementation expertise, at least during the first year of implementation. 7. Sustainability Rehabilitation works will be carried out according to high quality standard, and it is expected that the rehabilitation contracts laid with local contractors will essentially help restoring maintenance capacity. In addition, the project will support the reestablishment of a lean and efficient Road Administration. However, it is underlined that an adequate level of funding to road maintenance will be key to ensure long-term sustainability of the activities funded under the project. While the project will focus on identifying and implementing adequate funding mechanisms for road maintenance (e.g. introduction of user charges), the size of the Kosovo budget is expected, at least in the short-term, to significantly constrain the actual level of road maintenance budgets. 8. Lessons learned from past operations in the country/sector The recent events in Kosovo have resulted in such major changes in the organizational and operational structures of Kosovo that lessons learned previously in the former Republic of Yugoslavia have little relevance. However, experience from emergency road rehabilitation projects in other post-conflict situations in the region shows that: (i) the scope of emergency operations and related procurement rules should be kept as simple as possible; (ii) involve as much as possible local structure and knowledge in project preparation; (iii) provide local structure and involve foreign assistance only when required; and (iv) ensure a continuous dialogue between donors and local structures to build trust and transparency and ensure efficient project implementation. 9. Program of Targeted Intervention (PTI) N 10. Environment Aspects (including any public consultation) Issues: The project will focus exclusively on road and bridge rehabilitation activities. As such, it is expected that the project will have a positive impact on environment, as it will allow for the removal of bridge parts felt into rivers, cleaning of road shoulders and restoration of drainage systems. However, any subcomponent which present an opportunity for environmental enhancement will be designed accordingly, and the implementation of the project will be monitored to ensure that there is no degradation to the environment. 11. Contact Point: Aymeric-Albin Meyer Transport Specialist The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: (202) 473 7101 Fax: (202) 614 0900 12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. Processed by the InfoShop week ending April 14, 2000.